Lawmakers to decide on financing some of Mississippi's needs in 2013 session (poll)

View full sizeIn this Dec. 18, 2012 photo, Republican Lt. Gov. Tate Reeves speaks about his vision for the Senate during the 2013 session of the Legislature, from his office at the Capitol in Jackson, Miss. The upcoming session starts Jan. 8, 2013. (AP Photo/Rogelio V. Solis)

JACKSON, Mississippi -- Mississippi lawmakers didn't approve any new bond debt in 2012, but they're expected to consider at least a modest package during 2013. How modest may be up to Lt. Gov. Tate Reeves, whose attempt to cut borrowing last year was a key element in the decision to authorize no new debt.

State borrowing can finance a number of needs in Mississippi, including new construction and building renovation for community colleges, universities and state agencies, as well as money to aid new businesses, build new bridges on county roads and buy fire trucks.

"If we go another year without a significant bond issue, we're in trouble," Higher Education Commissioner Hank Bounds said in August.

Reeves, a Republican, wants the Legislature to pay for some of those needs each year using cash instead of credit. He's also aiming to trim the ability of the Mississippi Development Authority to borrow without legislative approval.

"What I hope is that we will be able to come to an agreement within the Legislature on a reasonable, rational bond package that focuses on long-term capital needs," Reeves said.

But whether he can hold down total borrowing is unclear. From 1996 to 2011, lawmakers authorized some borrowing every year. The typical amount authorized was $345 million, ranging from a low of $28 million in 2008 to a high of $857 million in 2010.

Last year, Reeves wanted to borrow $73 million and pay for $50 million in projects using cash. House members wanted to sell as much as $280 million in bonds.

This year, Reeves says he wants to try again to move some maintenance projects into cash. Top lawmakers proposed spending $20 million for county bridges.

Derrick Surrette, executive director of the Mississippi Association of Supervisors, says county governments would be happy to take cash, as long as they get some money. He said that when then-Lt. Gov. Amy Tuck created the bridge aid program, it was initially paid for with cash, not debt.

Gov. Phil Bryant, for his part, says he's staying out of fights over how much to borrow.

"We will look for leadership at the lieutenant governor's and the speaker's level," the Republican Bryant told The Associated Press.

However, there's at least one administration priority that could become a factor in bond discussions: The governor plans to break ground Monday on a new medical school building at the University of Mississippi Medical School in Jackson.

In November, Bryant had the MDA give $10 million to the effort from federal community development funds. But the total cost of the building is projected at $63 million, and bonding will probably be needed to pay for at least some of it. If Reeves holds the line at $73 million, paying for the rest of the medical school could take up more than half that amount.

The College Board identified a total of $684 million in priority needs on its campuses over the summer. Trustees say they know they won't get that much. But they would like lawmakers to give them some kind of predictable multi-year plan, so some big projects could get started knowing enough money would come to complete them.

Officials with the Department of Finance and Administration, which is responsible for everything from patching the leaks in the Capitol roof to finding a new home for the Department of Revenue, are also interested in a multi-year road map.